1. Jeff Haller Managing Partner & CEO DataServ
Finding the Key to the Master Lock: Integrating AP and AR to Drive Better Business Performance
Jeff Haller Managing Partner & CEO DataServ 1

2. What Businesses Can Benefit from Better Coordination?
Billing consists largely of third-party costs
Distribution companies with direct ship volume
Construction companies - Numerous supplier/subcontractor invoices needing aggregation into one client invoice
Cooperative purchase arrangements
BlackHawk is a distribution company

3. Finding the Key to the Master Lock: Integrating AP and AR to Drive Better Business Performance
BlackHawk - New company focused on “Buy and Build” with industrial distributors
First acquisition - Duncan Equipment Company (2010)
DataServ AP automation client since 2004

4. Why is this coordination valuable?
Finding the Key to the Master Lock: Integrating AP and AR to Drive Better Business Performance
Why is this coordination valuable?
Direct ship customer billing dependent on AP information
Impacts cash flow, credit collections, and earnings

5. Finding the Key to the Master Lock: Integrating AP and AR to Drive Better Business Performance
Supplier relations!
“Vendor/Partners” are key
“Get your act together and don’t make us do extra work”
DataServ solution enables:
Better vendor relationships
More agile approach for AR improvements
Process/Staffing model options

6. Finding the Key to the Master Lock: Integrating AP and AR to Drive Better Business Performance

7. Automating AP provided these AR benefits
Finding the Key to the Master Lock: Integrating AP and AR to Drive Better Business Performance
Automating AP provided these AR benefits
Reduced redundant billing centers
Eliminated manual keying of direct ship invoices (for AR entry)
Reduced time to bill client
Reduced paper routing between AP and AR departments
Dual data entry
AP data made available immediately for AR billing

8. Finding the Key to the Master Lock: Integrating AP and AR to Drive Better Business Performance
Results (as of April)
27,000+ invoices per month
Direct ship - 14,000 invoices per month
Same day invoice receipt to billing turnaround
27 locations working in the system
Number of AP processors utilizing the system - 7
Invoices processed per month per FTE !

9. Build a Bridge Between AP and AR!
Finding the Key to the Master Lock: Integrating AP and AR to Drive Better Business Performance
Build a Bridge Between AP and AR!
5 points:
Capture invoices upfront as soon as possible
Utilize “the right” OCR strategy to eliminate data entry and capture 2nd level data
Transfer upfront invoice capture to AR for same-day client billing
Eliminate sequential AP to AR process
Prioritize direct ship invoices from AP to eliminate billing delays

10. Finding the Key to the Master Lock: Integrating AP and AR to Drive Better Business Performance
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